View: Week 46 trading stubs, catching the falling knifes

Week 46 trading stubs, catching the falling knifes

Week 46 trading preview

Having a term in traders slang  "catching falling knifes" made a lot of sense recently as i had lots of counter trend setups in my watchlist. Out of potential last week setups two completed themselves giving me busy time managing open positions. Famous EUR/USD pair continued its downfall last week therefore my long call was stopped out early in the week, Gold (XAUUSD) call however was much more successful one, the market bounced off 1675's north hitting multiple targets without looking back giving very good return ratio for those who got involved in that setup.

Majority of coming week setups fall into "falling knifes" category due to their counter trend nature and the fact that lots of bearish sentiment is hanging in the air for the right and wrong reasons.

One of the exceptions is french CAC40 index that is still hanging sideways and completed last week advanced Cypher pattern at around 3400, there was a bounce to 0.236 fib retracement since then, so there is a good chance to get involved in this long setup with even more confirmation if this market will test 3400's area again.

The short setup on ALSI40 posted last week is still valid, having said that there is potential long setup that will invalidate previous short call if completed. The reason for that is bullish Gartleys pattern completing around 32900's area. South African index is still in sideways mode, if this is just a short break before going higher this setup seem to be good chance to get involved.

Switching to "falling knifes" there is definitely one on DOW 4hrs chart. Area around 12740's have been tested once already, market bounced north to about 0.236 retracement since. In case of reversal very likely to see divergence around that area as well as the fact that AB=CD pattern completes there as well.

Another "falling knife " setup is heading towards completion on EUR/USD FX pair. 3 Drives pattern could potentially complete around 1.2613 area, giving the long signal. This is counter trend setup with very appealing risk/.reward ratio where even first target gives ratio of 2.

And last but not least is GBP/JPY pair, heading towards bullish  BAT pattern completion. At the moment this pair is in the sideways mode that provides good opportunity to get involved in likely move back north.

Have a profitable week traders!


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